Legal Alert | Kenya | Special Economic Zones (SEZs): What You Need To Know - Africa Legal Network

Legal Alert | Kenya | Special Economic Zones (SEZs): What You Need To Know


In Kenya, an SEZ is a designated geographical area where business-enabling policies are implemented and sector-appropriate on-site and off-site infrastructure and utilities are provided for by the Kenyan Government.

An SEZ has the potential to be developed, whether on a public, private or public-private partnership basis. SEZs are considered to be outside the customs territory of Kenya, and therefore operate in a jurisdictional bubble that shields them from taxes and other regulatory bureaucracy.

The Special Economic Zones Act, 2015 (the “Act”) that establishes SEZs came into force on 15 December 2015. In this alert, we discuss the key provisions of the Act, its legal implications and the key incentives of having a business in an SEZ. The Finance Act, 2017 which was assented to on 21 June 2017 and whose provisions come into force on various dates, introduced various changes to the SEZ regime.

Further, we delve into some commercial and practical considerations that potential investors need to consider when investing in an SEZ enterprise.

Please click here to read more details of key provisions of this Act.

Should you have any queries or need any clarifications with respect to the above, please do not hesitate to contact Daniel Ngumy or Kenneth Njuguna

Daniel Ngumy
Kenneth Njuguna
Senior Associate

The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.